Agenda item

The Executive Member for Regeneration, the Executive Member for Finance and Governance, the Director of Regeneration and Culture and the Director of Finance submitted a report for the Executive’s consideration. The purpose of the report was to seek approval for:

a)    the commencement of a process to market and dispose of the Council’s freehold interest in land at Middlehaven, in order to facilitate the Boho Residential development; and,

b)    the principle to allocate grant funding of up to £2m from the Towns Fund, where an appraisal had confirmed that there was a funding gap that would otherwise make the scheme unviable, subject to confirmation of compliance with Subsidy Control rules.

The Boho Residential site was approximately 1.25 acres and was shown on the plan attached as Appendix 1 of the submitted report. The area comprised the eastern area of a Council owned car park, which was surrounded by a perimeter fence with gated access, and was adjacent to the site of Boho X.

The vision for the proposed scheme was to create an aesthetically pleasing development of up to 90 residential units. Marketing particulars would be produced, which planned to provide guidelines on the key layout principles, type and quality of development that the Council would be seeking to achieve on the site. Historic England had already identified that future development in the area should show greater regard for the historic grid iron pattern of the area.

The land had been valued by Valuation and Estates at £220k per acre, giving a land value of £275k. An Asset Disposal Business Case was attached at Appendix 2 to the submitted report.

The anticipated capital receipt from the sale of the site could not be considered in isolation. The wider socio-economic benefits to the town also needed to be considered. The development would complement Boho X and would support the implementation of the DigitalCity masterplan by providing high-quality homes for potential employees.

ORDERED

a)    That the commencement of a process to market and dispose of the Council’s freehold interest in land at Middlehaven be approved, in order to facilitate the Boho Residential development.

b)    That the principle to allocate grant funding of up to £2m from the Towns Fund be approved, where an appraisal had confirmed that there was a funding gap that would otherwise make the scheme unviable, subject to confirmation of compliance with Subsidy Control rules.

REASON

The Elected Mayor of Middlesbrough had an ambition to attract an additional four thousand people to live in the town centre in the next ten years. The Mayor’s ambition accorded with the priorities for Place, set out in the Strategic Plan 2020-23, which stated that the Council would:

a)    develop Middlehaven as a residential, leisure and commercial centre of national significance; and

b)    build more town centre homes to boost businesses and increase vibrancy, while reducing the need to build on green space.

The establishment of a viable and vibrant Urban Living concept would also give confidence to occupiers, developers and investors that the town centre was a safe, comfortable and well managed place in which to enjoy living, learning/working and leisure time.

The development would also complement Boho X and would support the implementation of the DigitalCity masterplan by providing high-quality homes for employees.